Volatility High as Gold, Silver Recover from Monday’s Plunge

Gold and silver were recovering Tuesday morning as financial markets stabilized
somewhat following Mondays sharp losses and loss of confidence this despite the
U.S. Bureau of Economic Analysis revising Q3 GDP downward to 2% from a previous
estimate of 2.5%. The bias is decidedly downward, with continued high volatility
expected across nearly all markets and asset classes given the persistent
inability of government leaders to resolve European Union sovereign debt and
U.S. budget issues. Shares of NovaGold Resources (AMEX: NG ) were surging higher
on reports of large, prominent hedge funds acquiring shares following last weeks
news that the company would spin off its Alaskan Ambler copper mining project
and sell as much as 50% of its stake in its Galore Creek copper and gold project
in British Columbia. Spot gold was more than 1.4% higher around 10:30 a.m.
Tuesday, while spot silver was up nearly 1.75%. Spot gold was bid at $1,701.10
per ounce with an ask price of $1,702.10, having traded at a high of $1,703.50
and a low of $1,685.60. The afternoon reference price fixing was set at $1,699,
according to Kitco market data . Spot silver was bid at $32.19 per ounce with an
ask price of $32.29. The morning high as of time of writing was $32.30, and the
low was $31.40. Mondays reference price was set at $31.85 in the London a.m.
Gold and silver trusts were showing strong gains Tuesday morning. The SPDR Gold
Trust (NYSE: GLD ) was around 1.2% higher. The iShares Gold Trust (NYSE: IAU )
was 1.1% higher. The iShares Silver Trust (NYSE: SLV ) was up around 2.7%. Gold
and silver mining ETFs also were recovering from Mondays sharp losses. The
Market Vectors Gold Miners ETF (NYSE: GDX ) was up around 1.2%. The Market
Vectors Junior Gold Miners ETF (NYSE: GDXJ ) was around 2.4% higher. The Global
X Silver Miners ETF (NYSE: SIL ) was 1.4% higher. Shares of gold miners were
moving up sharply as well, with NovaGold Resources surging but volatile.
Agnico-Eagle Mines (NYSE: AEM ) was nearly 1.9% higher. Barrick Gold Corp.
(NYSE: ABX ) was around 1.6% higher. Goldcorp (NYSE: GG ) was up around 1.8%.
Newmont Mining Corp. (NYSE: NEM ) was around 0.8% higher. NovaGold Resources was
swinging widely, but up sharply, showing gains ranging between 3% and more than
5%. Silver miners shares werent participating in the recovery. Coeur dAlene
Mines Corp. (NYSE: CDE ) was around 0.5% lower. Hecla Mining (NYSE: HL ) was
down around 1%. Pan American Silver Corp. (NASDAQ: PAAS ) was around 0.3% lower.
Silver Wheaton Corp. (NYSE: SLW ) was flat to down slightly. Silver Standard
Resources Inc. (NASDAQ: SSRI ) was down between 0.2% and 0.5%. As of this
writing, Andrew Burger did not hold a position in any of the aforementioned
stocks.